MBA Regulatory Compliance Conference Recap
by Suzanne Familo Cieslica, Esq.
Bankers Advisory Staff Attorney
MBA Regulatory Compliance Conference Recap & Key Legislative Issues
The Mortgage Bankers Association’s Regulatory Conference 2010 was held in Washington, D.C. on September 26, 2010 through September 28, 2010. Bankers Advisory Staff Attorneys Rachel Horman and I, Suzanne Familo Cieslica, attended. Many topics were covered at the conference and are highlighted below.
On Sunday, several workshops were offered. Current requirements under federal law for FCRA, FACTA, Fair Housing, ECOA, HMDA, RESPA, TILA, and HUD, and recent developments and updates were reviewed, including those scheduled to take effect this year and in the near future. Experts discussed servicing requirements and initiatives that will help borrowers who are experiencing difficulty making payments, including HAMP and FHA. The panelists believe the industry should ensure current policies and procedures meet the current requirements for both and should prepare to make the necessary changes needed as new laws develop. A session on State Law Requirements covered new developments on the state level, including SAFE Act licensing requirements and state predatory lending and servicing requirements.
Monday marked the official start of the conference, and the General Sessions had two panel discussions. The first panel combined experts from the National Community Reinvestment Coalition, Mortgage Bankers Association (“MBA”), Bank of America and the U.S. Department of Treasury. The discussion was lively as the panelists discussed the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and what could lie ahead as the Dodd-Frank Act is implemented. Current changes affecting the Consumer Financial Protection Bureau, Truth in Lending Act, Real Estate Settlement Procedures Act, Federal Housing Administration, and the Home Affordable Modification Program were also covered. The second panel discussion included representatives from the Office of Single Family Program Development, U.S. Department of Housing and Urban Development, the Federal Housing Finance Agency and the Division of Consumer and Community Affairs at the Federal Reserve. The regulators provided insight into the state trends that compliance officials and others need to look out for in the future. Tuesday’s General Session featured a conversation on Compliance Initiatives and Enforcement Developments with state regulators from New York, Maryland, and Pennsylvania. They discussed their own states’ approach to the new developments and also rising areas of fraud in these areas.
A highlight of the conference was a luncheon in which Michael Borden, Senior Counsel, House Financial Services Committee, and Andrew Miller, Senior Counsel, House Financial Services Committee spoke. They were both informative and entertaining as they touched upon the creation of the Dodd-Frank Act and the Consumer Financial Protection Bureau, and the effects both may have upon various lending practices.
Conference Agenda of the Mortgage Bankers Association of America
As part of the Mid-Atlantic and Northeast States MBA Capitol Hill Group, Rachel and I accompanied John V. Konyk, Executive Director of Government Affairs, Weiner Brodsky Sidman Kider P.C., Bradford B. Cheney, Director of Legislative Affairs for MBA, and other conference attendees, to visits with members of the Senate Banking and House Financial Services Committee. As we met with David Klein, Legislative Director for Representative John Adler (D-New Jersey), Jeffrey M. Last, Legislative Assistant for Representative Leonard Lance (R-New Jersey), and Anne Fultz, Legislative Director for Representative Jim Gerlack (R-Pennsylvania), the following items were discussed:
8 Principles for Implementing Financial Regulatory Reform
The MBA requests lawmakers to apply the following principles to the many new rules that will derive from the Dodd-Frank Act: (1) seek comprehensive, coordinated solutions; (2) foster certainty in the marketplace; (3) increase transparency; (4) balance the ability of the private marketplace to control lending with the application of new regulation; (5) ensure market liquidity; (6) appropriately tailor solutions to the current market environment; (7) maximize competition to lower costs; and (8) promote uniformity.
Extend the Government Loan Limits to Maintain Support for the Housing Finance System
The MBA requests an extension of higher loan limits to be pushed from January 1, 2011 to September 30, 2011, to insure Borrowers could continue to obtain affordable long-term, fixed-rate mortgage credit. The Senate and the House voted on September 29, 2010 to extend these limits through September 30, 2011.
Pass Tax Provisions that Support Economic Growth and Real Estate Finance
MBA supports tax policies which encourage and support home ownership and affordable rentals.
Secondary Market Changes
MBA recommends that the government change its role in the secondary mortgage market by establishing government-chartered and regulated mortgage credit guarantee entities and by guaranteeing selected mortgage-backed securities issued by those entities.
FHA and Ginnie Mae Modernization
MBA suggests that Congress support FHA and Ginnie Mae and the continuing success of both by modernizing and strengthening these vital join programs.
Suzanne is a Staff Attorney at Bankers Advisory. She is a graduate of St. Bonaventure University and received her Juris Doctor from California Western School of Law. She holds Bar admissions in Massachusetts, New York and California (pending).
To discuss how Bankers Advisory can assist your organization with compliance education and monitoring, contact Suzanne at 617-489-2008 or email suzanne@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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